Las Vegas-based casino operator, MGM Mirage, has made a $7.65bn offer for rival operator, Mandalay Resort Group.
MGM’s offer includes purchasing each Mandalay Resort share for $68 and the assumption of $2.8bn debt.
The deal represents a premium of 12.8 per cent for shareholders over Mandalay’s weekend closing share price of $60.27.
Terry Lanni, chair and CEO of MGM Mirage, said: “The combination of these two great companies would provide Mandalay shareholders with a premium price for their shares as well as providing several strategic benefits to shareholders in MGM Mirage.”
MGM – which operates the MGM, The Mirage, The Bellagio and Treasure Island casinos in Las Vegas – was recently involved in a bidding war for UK-based gaming group, Wembley, but withdrew its offer after being trumped for a second time by rival bidder, BLB Investors.
Mandalay Resorts operates the Las Vegas casinos, Mandalay Bay, Excalibur, Luxor and Circus Circus.
Should MGM’s offer be accepted, the enlarged group would most likely have to dispose of some of its casino assets to satisfy competition authorities.
